Italian bank Fibanc has spoken to StructuredRetailProducts.com about its Spanish offering, focused, since 2002, around the Valor range.
“[The products] have been a complete success,” said Raúl Martín from Fibanc’s marketing department; “We have been selling this range for four years and we are going to continue targeting our clients with this type of product.”
Martín said the products raise an average of €5m per tranche, though they often raise more and have raised up to €15m in a single tranche.
Fibanc is expecting good results with its latest tranches, given that the previous two, Valor Plus 77 and Valor Plus 80, performed very well: “As with previous issues, the new products will have a relatively low 2-3 million euros target, but we will have to increase the volumes as happened with Plus 77 and Plus 80, for which we increased the volume up to three times due to client response,” said Martín.
Fibanc’s Spanish structured products range continues to favour the insurance wrapper (it last sold a fund four years ago) as well as non-common pay-off types – a power option in its last five Valor Plus products, for example.
According to Martín, its client profile is a conservative type who wants to invest in the stock market with a good chance of getting a return at maturity. “Those clients properly advised know that our products offer a better chance of a [decent] return than those offered by our competitors,” he said. “We only have to check recent newspaper headlines to realise that guaranteed funds have hardly grown over inflation levels.”
Fibanc will use its own network and that of exclusive Mediolanum’s Group commercial network, which is known in Spain as Global Consultant (Consultor Global). “This is our main sales outlet. Other sales channels such as internet, adviser, direct mail marketing or over-the-counter sales are just a support to our Global Consultant network,” concluded Martín.
